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  • FC-4.1 FC-4.1 Appointment of MLRO

    • FC-4.1.1

      Conventional bank licensees must appoint a Money Laundering Reporting Officer ('MLRO') who is an approved person. The MLRO must be approved by CBB prior to his appointment. The licensee must submit to the CBB a completed Form 3, in accordance with Chapter LR-1A.

      Amended: July 2016
      October 07

    • FC-4.1.2

      The position of MLRO must not be combined with functions that create potential conflicts of interest, such as an internal auditor or business line head. The position of MLRO may not be outsourced.

      October 07

    • FC-4.1.3

      Subject to Paragraph FC-4.1.2, however, the position of MLRO may otherwise be combined with other functions in the conventional bank licensee, such as that of Compliance Officer, in cases where the volume and geographical spread of the business is limited and, therefore, the demands of the function are not likely to require a full time resource. Paragraph FC-4.1.6 requires that the MLRO is a Director or employee of the licensee, so the function may not be outsourced to a third party employee.

      October 07

    • FC-4.1.3A

      For the purpose of Paragraphs FC-4.1.2 and FC-4.1.3 above, conventional bank licensees must clearly state in the Application for Approved Person Status — Form 3 — when combining the MLRO or DMLRO position with any other position within the conventional bank licensee.

      Added: October 2017

    • FC-4.1.4

      Conventional bank licensees must appoint at least one deputy MLRO (or more depending on the scale and complexity of the licensee's operations) to act for the MLRO in his absence. The position of Deputy MLRO is a controlled function and the DMLRO is an approved person. The DMLRO must be approved by CBB prior to his appointment. The DMLRO must satisfy the conditions outlined in Subparagraphs FC-4.1.6 (d) to (g).

      Amended: July 2016
      Amended: October 2009
      October 2007

    • FC-4.1.5

      Conventional bank licensees should note that although the MLRO may delegate some of his functions, either within the licensee or even possibly (in the case of larger groups) to individuals performing similar functions for other group entities, that the responsibility for compliance with the requirements of this Module remains with the licensee and the designated MLRO.

      October 07

    • FC-4.1.6

      So that he can carry out his functions effectively, conventional bank licensees must ensure that their MLRO:

      (a) Is a member of senior management of the licensee;
      (b) Has a sufficient level of seniority within the conventional bank licensee, has the authority to act without interference from business line management and has direct access to the Board and senior management (where necessary);
      (c) Has sufficient resources, including sufficient time and (if necessary) support staff, and has designated a replacement to carry out the function should the MLRO be unable to perform his duties;
      (d) Has unrestricted access to all transactional information relating to any financial services provided by the conventional bank licensee to a customer, or any transactions conducted by the conventional bank licensee on behalf of that customer;
      (e) Is provided with timely information needed to identify, analyse and effectively monitor customer accounts;
      (f) Has access to all customer due diligence information obtained by the conventional bank licensee; and
      (g) Is resident in Bahrain.
      Amended: October 2011
      October 2007

    • FC-4.1.7

      [This Paragraph is left blank].

      Added: July 2012

    • FC-4.1.8

      In addition, conventional bank licensees must ensure that their MLRO is able to:

      (a) Monitor the day-to-day operation of its policies and procedures relevant to this Module; and
      (b) Respond promptly to any reasonable request for information made by the Anti-Money Laundering Unit or the CBB.
      October 07

    • FC-4.1.9

      If the position of MLRO falls vacant, the conventional bank licensee must appoint a permanent replacement (after obtaining CBB approval), within 120 calendar days of the vacancy occurring. Pending the appointment of a permanent replacement, the licensee must make immediate interim arrangements (including the appointment of an acting MLRO) to ensure continuity in the MLRO function's performance. These interim arrangements must be approved by the CBB.

      October 07